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PBR: Insurance Agents Liable?

WhatUTalkinBout Willis

WhatUTalkinBout Willis

Steve Lepore
Joined
Mar 16, 2011
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Location
Right here, chained to this desk for eternity
Pit boss request:

So my parents beat friends have a boy who just graduated college and it a job selling insurance.

I made a HUGE mistake and agreed to meet with him. Initial meeting went fine, follow meeting where he 'made his pitch' was only moderately painful. Turns out he really just wants to sell life insurance. I'm all set on that front.

I politely told him as much and now he is all over me to 'adjust his proposal' based on additional info he learned in our second meeting (I'm buying into my firm as a partner).

I'm not buying the insurance, but he is saying he needs to meet again to cover himself legally. I can't see it.

Is there any reason for me to keep Wasting this kid's time?
 
I'm sure he has some justification for why he gave that line, assuredly his boss told him to use it at some point.

However, I'm nearly certain as well that if you two are to never have a meeting again, he will be just fine legally.
 
The only way I could see that there would be a legal obligation is if he actually ran through the entire process and had you set up to receive insurance. I bought long term disability recently and got talked into getting life insurance as well with the understanding that I could back out within a certain time frame and have everything refunded. I did back out and did have to go to the office to sign something saying that I gave them permission to cancel the policy. If no policy has been enacted then I see no legal repercussions for this guy.
 
You should call him and let him know using such tactics will cost him lots of business.
 
I assume he's full of shit if you don't have any existing relationship with him. If you had an existing policy with this person, and he didn't suggest adjustments/additions because of a major life change, such as a new child, business, etc., I think he would be telling the truth. I have heard of financial advisors and insurance agents receiving complaints or getting sued by heirs/beneficiaries because they didn't have enough insurance given their circumstances.
 
Even if he has some legal exposure, he could cover his ass by emailing you the adjusted proposal. There is no reason he has to actually meet with you, other than to continue to pitch you - sending something in writing is always better for legal CYA than a meeting anyway. Tell him that if there is something he needs to present to cover his legal bases he can send it to you by email but that you are not interested in buying insurance.
 
When did insurance agents start going to the Amway School of Salesmanship?
 
I never saw this thread but lol. No, he's full of shit. Good line, though.
 
Truifh and qcdeac are in the ballpark here. Agents have been sued by families/beneficiaries/etc. for recommendations made/not made. Agents can also be legally liable for not taking the proper steps to get a conditional receipt of insurance for someone taking an application. The guy isn't lying, but there would only be potential legal ramifications in the event that someone took him to court over it.
 
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